Which One of the Following Statements Is the MOST Accurate

question 54

Multiple Choice

Which one of the following statements is the MOST accurate?

• A) Spot exchange rates are always higher than forward exchange rates.
• B) Spot exchange rates are always lower than forward exchange rates.
• C) Spot exchange rates and forward exchange rates are always equal.
• D) Spot exchange rates and forward exchange rates are equal when the value date and the date of the spot transaction are the same.
• E) Spot exchange rates and forward exchange rates never move closely together.

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Definitions:

Preferential Payment

A payment made by a debtor that favors one creditor over others, often scrutinized in bankruptcy proceedings.

Consumer Debt

Debt that is incurred by an individual primarily for personal, family, or household purposes.

Bankruptcy Proceedings

The legal process through which individuals or entities unable to pay their debts can seek relief from some or all of their financial obligations.

Insolvent

The condition of being unable to pay debts as they fall due, or having liabilities that exceed assets.